BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI held on to the psychological 1,500 level last Friday with domestic institutions providing support from the persistent foreign selling and allowing for the key index to post minute gains.
Still, the broader market shares closed mostly in the red amid the on-going geopolitical tensions in the Middle East while investor sentiments stayed mostly dour.
This resulted in most stocks closing lower as well as keeping market breadth on the negative side. Traded volumes slipped to 2.6 billion shares.
The start of the week would see a continuation of the cautious market undertone following the US’ surprise attack on Iranian nuclear facilities over the weekend.
Although the attack was relatively limited, sentiments are likely to stay guarded as the conflict is seen deepening with the US’ involvement that could see more market players veering towards safe-haven assets and out of equities.
This could result in further selling among the FBM KLCI constituents that would again leave the psychological 1,500 level in a precarious position.
If the 1,500 level gives way, the supports are lowered to the 1,492-1,495 levels, followed by the 1,486 level. On the upside, the esistances remain at the 1,507-1,511 levels, followed by 1,517 points.
Malacca Securities Research
With the US military action in the Middle East, we expect the local bourse to start the week on a lacklustre tone.
The heightened geopolitical tensions may spur buying interest in gold and oil & gas (O&G)-related counters.
Despite the on-going tension, we remain positive on the construction and utility sectors with the former benefitting from public infrastructure developments and data centre investments across the country.
The latter, meanwhile, is supported by Tenaga Nasional’s Bhd’s power grid upgrades and the country’s renewable energy shift under the National Energy Transition Roadmap (NETR) masterplan.
Thus, we favour counters like Gamuda Bhd, IJM Corp Bhd, Inta Bina Group Bhd, MN Holdings Bhd, Southern Cable Group Bhd and Solarvest Holdings Bhd.
Despite its higher closing, the key index continued to be resisted below the MA (moving average) lines with technical indicators showing signs of weakening; The MACD histogram has turned negative while the RSI has broken below 40.
Resistance is anticipated around 1,517-1,522 while support is located at 1,482-1,487. – June 23, 2025
